UPDATE 1-New York Stock Exchange to delist Peru's Grana y Montero

LIMA, May 17 (Reuters) - The New York Stock Exchange said on Thursday it had begun the process of delisting Peru’s Grana y Montero after the country’s biggest construction company missed the deadline to submit its 2017 financial audits to the U.S. Securities and Exchange Commission.

The builder, which is also listed in Lima, said in a statement it would appeal the decision within the 10-day appeal period, but nonetheless hoped to file the missing reports and return to the stock exchange by June.

The company said the delisting could trigger a similar suspension of its shares on the Lima stock exchange.

“This is a process conducted by stock exchanges and designed to protect investors,” the company said.

Shares in Grana y Montero have rebounded somewhat since Martin Vizcarra became the president of Peru following the resignation of Pedro Pablo Kuczynski amid growing graft allegations.

Grana’s shares had sunk over much of the previous year during a scandal involving its partner Brazilian builder Odebrecht. (Reporting by Marco Aquino; Writing by Dave Sherwood Editing by Leslie Adler)